Title: Heuristic to solve bi-objective allocation problem in distribution logistics

Authors: R.A. Malairajan, K. Ganesh, S.C. Lenny Koh

Addresses: Mechanical Engineering Department, Vickram College of Engineering, Madurai-Sivagangai Road, Enathi, Sivagangai – 641105, India. ' Integrated Supply Chain, Manufacturing Industry Solutions Unit, Tata Consultancy Services Limited, Vikhroli West, Mumbai – 400079, India. ' Management School, University of Sheffield, Sheffield, S10 2TN, UK

Abstract: Generalised assignment problem (GAP) is a well-known non-deterministic polynomial (NP) hard combinatorial optimisation problem to find the minimum cost during assignment of jobs to agents so that each job is assigned exactly once and agents are not overloaded. In this research, we look at the GAP from a bi-objective point of view to accommodate some real world situations. The application of BGAP for a typical practical supply chain problem of allocating a set of retailers to multiple distributors possessing different capacities with two specific performance objectives such as travel distance and travel time is considered. We propose a simulated annealing for an intensive search to find the Pareto optimal solutions to solve BGAP in a shorter period of time. Extensive computational experiments are carried out to evaluate the performance of the proposed method. Trials on benchmark data-sets and on a large number of test-problems have yielded encouraging results.

Keywords: bi-objective generalised assignment problem; BGAP; simulated annealing; genetic algorithms; GAs; bi-objective allocation; distribution logistics; supply chain management; SCM; Pareto optimal solutions.

DOI: 10.1504/IJLEG.2009.026413

International Journal of Logistics Economics and Globalisation, 2009 Vol.2 No.1, pp.40 - 50

Published online: 10 Jun 2009 *

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